Question: How do you avoid paying taxes with Bitcoin?
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Replies (26)
Monero off-ramp
Don’t sell, borrow against, live somewhere where’s no capital gains, go on the run
This requires a distinction for legal or illegal methods unless you don't care.
I recently tested a Strike loan product. I also have a note on how I use an HSA and credit card, but that's indirect since I only have the sats in cold storage as a reserve to avoid true debt.
By true debt I mean debt that I can't immediately pay off from the moment I take it on until it's paid off.
Endure german weather and HODL for >1 year
Only + 1 ? I think it’s +5 here in Belgium
currently only 1 year (same as Gold), but who knows when they take it away.
Basically, wait until Nazism is over before spending any
I never sell 😎
I was setting up Jam on my Start9 but haven't used it yet. I'm actually yet to use a CoinJoin
@BTC Sessions does a good guide on it:
Ah sweet, thanks!
Must be careful with the loan terms at least where I live. If do not remain in custody of the collateral during the loan, it's the same as if you sold the coins when taking the loan (cap gains) and buying it back when the contract ends. Ironically, not your keys not your coins.
Any idea how this would work for a foreigner who has hodled for >1y?
Care should always be taken in such matters. No one way will fit everyone.
No one is going to give you a loan while letting you control the collateral, so that seems obvious. Of course it's a tradeoff to consider.
One common strategy is to avoid taxable events.
Don’t Sell
Sell or use as money in limited amounts
Sell or leverage in other jurisdictions.
Using the bitcoin isn’t the problem it’s using/ converting / buying fiat currencies that creates issues
And that would mean cap gains taxes when you get the loan plus interest to the lender
Buy without kyc. Spend with crypto cards, registered with ID from tax free jurisdiction- Panama, Paraguay, Georgia etc
There are no capital gain taxes on fiat loans where I live. There would be if the Bitcoin was sold to pay any part of it back, on the Bitcoin that was sold.
Again, every person must consider the implications where they are. This works for me, right now, in my current location.
Obviously, you need income to repay the loan. Otherwise you still pay taxes and only benefit from NGU over time, assuming Bitcoin beats the loan terms. That is really a speculation that may not happen, which is why I write Bitcoin off when I use it this way. Discipline is required.
works only if you fall under german tax jurisdiction.
Very good question!
I would buy without KYC, build a trusted network of people where you can buy bitcoin for cash or vice versa.
Get paid in bitcoin.
Sell your second hand stuff for bitcoin.
Very underrated question.
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You just don’t, what are they going to do if we all just don’t? This system is collapsing, they don’t have the resources to chase us all down lol… you can also just buy it p2p so no need to report anything, and if you buy from exchange immediately send it to cold storage so it shows no gains… let’s stop supporting that financial mafia!
Declare Natural law in your life. That alone is a life long study.